A zero coupon T-bill with 4-month expiration and $1000 par is currently selling at $974. What is your annual percentage yield (i.e. APR using simple annualization, not compounded)? (Provide your answer in percent rounded to two digits, omitting the % sign.)
Annual Percentage yield=(Par value-Price)/Price*12/number of
months to expiration
=(1000-974)/974*12/4
=8.01%
A zero coupon T-bill with 4-month expiration and $1000 par is currently selling at $974. What...
A zero coupon T-bill with 4-month expiration and $1000 par is currently selling at $974. What is your annual percentage yield (i.e. APR using simple annualization, not compounded)? (Provide your answer in percent rounded to two digits, omitting the % sign.) P.S Please provide the correct answer
A bond is paying $20 coupon every six month. The bond's face value is $1000 and it has 5 years to maturity. By what percentage will the price of the bond change, if the current YTM of 10% decreases to 8.5% due to a credit rating upgrade? (Provide your answer in percent rounded to two decimals, omitting the % sign.)
A bond is paying $40 coupon every six month. The bond's face value is $1000 and it has 5 years to maturity. By what percentage will the price of the bond change, if the current YTM of 10% decreases to 9% due to a credit rating upgrade? (Provide your answer in percent rounded to two decimals, omitting the % sign.)
A bond is paying $80 coupon every six month. The bond's face value is $1000 and it has 5 years to maturity. By what percentage will the price of the bond change, if the current YTM of 10% decreases to 8% due to a credit rating upgrade? (Provide your answer in percent rounded to two decimals, omitting the % sign.)
A zero-coupon Treasury security (that is, a T-bill) has 50 days to maturity and a discount yield of 4.2%. Calculate the effective yield for this security. (This is not the bond equivalent yield, but rather the equivalent of an EAR (effective annual rate).) Answer in percent terms to two decimal places. Do not enter the percent sign. Do not assume the inputs are the same as for the previous question. You can assume whatever face or par value you want,...
1. A bond is paying $60 coupon every six month. The bond's face value is $1000 and it has 5 years to maturity. By what percentage will the price of the bond change, if the current YTM of 10% decreases to 8.5% due to a credit rating upgrade? (Provide your answer in percent rounded to two decimals, omitting the % sign.) Please be sure of answer and show explanations.
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You have purchased a bond with 6 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $975.48. Two years later, when the YTM=7.2%, you sell the bond. What was your average annual realized yield on the bond, if you were able to reinvest coupons at 6.5%? [Provide your answer in percent rounded to two decimals, omitting the % sign.]
Delray Auto are currently selling at $1,050, with 8% annual coupon payment and 1000 par. These bonds have 16 years left until maturity. What is the yield to maturity? Assume yield to maturity remain the same, what is the price a year later (with 15 years left until maturity)? From current year to next year, calculate the current yield, capital gain, and total return from the bond? Yield to maturity = ?? Price a year later = ?? Current yield...
Inc wants to issue new 6-months bill with zero coupon for some much-needed short-term funding needs Currently, the market yield for similar bill is 6 percent, if the par value of the bill is $1000, how much will the bill sell for in the market? A.$1000 B.$966.18 C.$970.87 D.$1060 E.$95326